Attorneys for Merchant Advance Companies

Representing Merchant Cash Advance Companies

The Federal Trade Commission, New York State Attorney General and New Jersey Attorney General have all recent targeted Merchant Cash Advance companies. Not surprisingly, Merchants (i.e., customers of MCA companies) often seek to avoid their payment obligations by arguing that Merchant Cash Advances are in fact loans subject to state usury caps. MCA companies are also sometimes sued by banks who contend, among other claims, that the MCA company “converted” its collateral by purchasing accounts receivable from a bank debtor based on alleged security interests. Factoring companies also sometimes sue Merchant Cash Advance companies as well when a merchant with a Factor sells accounts receivable to an MCA company.

We know Merchant Cash Advance companies need two things: well-drafted contracts and hard-hitting legal representation when litigation becomes necessary.